1. Qualifying, Quantifying and Meeting the Challenge of Internet Costs Dr. Olfat Abd El Monsef NTRA

2. Policy Regulatory environment &Infrastructure Development Universal Access ICT National Initiatives The Future

3. Regulatory environment &Infrastructure Development Liberalization of Telecom Sector PPP Present Status –Fixed Network –Mobile Operators –Internet and Data Service Providers –International Gateways and Cables Landing

4. Universal Access Universal Service Programs Objective: –Coverage of remote and underserved areas –Increase penetration for covered areas –Public access, payphones, telecenters Affordable Access

5. ICT National Initiatives Free Internet Initiative PC to Every Home IT Clubs Broadband Initiative

6. Free Internet Initiative: Objective: Introduction, awareness & availability of the Internet nationwide, paving the road for broadband nationwide. Date: Launch Jan. 2002

7. Free Internet Initiative: Model: –Subscription-Free Internet Services: Every Phone Owner is Eligible –Cost of Local Phone Calls (1.23 EGP/hr ~ 0.2 $ per hour) –Special Numbering Prefix 0777-0707 –Public Private Partnership: MCIT and TRA with Telecom Egypt and Local Private-Sector ISPs –Bill Collected with Regular Phone Bills –Offloading / revenue-sharing mechanism –Increased Competition: Improved QoS - Reduced Costs - Utilization Growth

8. PC for every home Objective: Affordable High-Quality Local- Brand PCs Date: December 2002 Phase II Egypt 2010 - Nation Online Initiative

9. PC for every home Model: –Public Private Partnership: MCIT – Telecom Egypt – Misr Bank –Local private sector Companies –Every Phone Owner is Eligible –Paid on Monthly Installments with Phone Bills ($15 – 20$ models) financed by the banking sector –Suppliers Accredited and Samples Approved by MCIT –Market stimulation arises interest in Local Manufacturing

10. IT Clubs: Objective: Introduction, awareness & availability of the Internet nationwide in least developed areas. Date: Started 2002 Model: PPP

11. Broadband Initiative: Objective: increasing broadband penetration and promoting higher speeds connections paving the road for e-content market and to Egypt's information society Date: Launched May 2004

12. Broadband Initiative: Model: –Partial Local loop unbundling (line sharing) Q2 2002 yet very low numbers of BB subscribers –Public-Private-Partnership: MCIT and TRA with Telecom Egypt and Local Private-Sector ISPs –Price reduction, effective rollout and effective end-user installation in addition to a nationwide brandless marketing campaign –Promoting ADSL higher speeds by getting their prices down (currently 256kbps -> EGP 95 – other limited packages that starts as low as 45 EGP)

13. Present Status: Internet users: ~ 7.7 millions International BW: ~ 15 Gbps ADSL subscribers: ~ 355 Thousands PC sales within the initiative: ~ 155 Thousands IT Clubs: ~ 1550 nationwide

14. The Future: Development of Local Content Peering and Hosting Convergence of Networks and Services Effect of telecom-media convergence on penetration

15. Thank You